The Economic Times
English EditionEnglish Editionहिन्दीગુજરાતી
| 13 July, 2020, 03:05 AM IST | E-Paper
Search
+

    Strategies

    High Networth Individuals (HNIs), Ultra-HNIs and some retail investors have shifted some of their investments to ETFs because of their ability to generate better returns amid market volatility

    Gross inflows into MF schemes via SIPs in June fell to Rs 7,927 crore from Rs 8,123 crore in May.

    Mutual fund advisors and financial planners believe that profit booking is not the only reason for the sharp fall in mutual fund net inflows in June.

    Inflows into mutual fund schemes through SIPs in June fell to Rs 7,927 crore from Rs 8,123 crore in the previous month.

    Are MNC funds a safe bet in the current scenario?

    MNC Funds or mutual fund schemes that invest mostly in multinational companies are gaining currency these days. MNCs are always bankable, especially in the current bleak economic scenario due to the pandemic.

    Many mutual fund investors are not happy with the performance of their schemes. Some of them can’t figure out why the scheme is still not offering positive returns even though the markets seem to have recovered substantially from the lows in March.

    Why did Santosh Kamat, MD and CIO, India fixed income, Franklin Templeton Mutual Fund, invest in long-term papers when some of funds are meant for very short-term horizon of a few months to a year? Why did he lend large sums to a few companies?

    Retail and HNIs have shown strong participation in midcaps and smallcaps in June.

    HDFC Mutual Fund plans to rollover HDFC Equity Opportunities Fund – Series 2, a close-ended fund launched in May 2017 with a tenure of 1126 days, by another 18 months.

    Debt fund fiasco starts hurting Franklin Templeton MF; AAUM falls sharply in April-June quarter

    Apart from debt schemes, Investors also seem to be pulling money out even from the equity schemes managed by the fund house. Equity AAUM also suffers because of market movements.

    "With markets around the world in so much turmoil, it looks like a good opportunity to get into foreign markets."Investing in foreign markets, especially the USA, has become extremely popular lately.

    Data in the derivatives segment also reflect confidence in the market.

    It is only during crises like the current one that our faith in ourselves is shaken, making us wonder if we could do with outside help. If you too have been thinking about the need to hire a planner to guide you through the ongoing crisis and beyond, ask yourself these five questions.

    The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures.

    Why are most mutual fund investors `aggressive’ these days?

    Every mutual fund investor, especially the new one, is an aggressive investor these days. You ask them about their risk profile, and you might get responses like these:“I am okay with high risk. I am young.”

    Riding on the back of a depreciating rupee, Indian prices calculated with GST hit a record high of Rs 50,000 per 10 grams.

    Now, all the three rating agencies — CARE, Crisil and India Ratings — have a C rating on Jharkhand Road Projects. As a result, as per external valuation agencies’ matrix, the paper will now get valued at 65% instead of the earlier 50% valuation.

    The BSE 500 index has gone up by 40.3 per cent, from 2020 low of Rs 7,864.01.

    Many new investors are eager to create wealth over a long period. They choose the best equity mutual fund for the purpose. Since they know a little about the advantage of diversifying, they also try to invest in multiple schemes.

    ‘Hybrid mutual funds still have a place in the portfolio’

    In very simple terms, the fund should provide a fine balance between risk and return. Lower risk than an equity fund and higher return than a debt fund. That makes balanced funds a great product for slightly conservative investors.

    The Economic Times